WORK METHOD

TABLE OF CONTENTS

1.0 General

2.0 Detailed Design and Engineering Plan

3.0 Material Management Plan and List of Long Delivery Material

4.0 Construction and Installation Activity

5.0 Safety and Environmental Plan

6.0 Quality Assurance Plan

WORK METHODE
1.0 GENERAL

1.1 Introduction

EPC Contractor will be responsible for continuing engineering, procurement, construction

and commissioning process of the power plant.
1.2 Project Execution Strategy

1.2.1 General Objectives

CONTRACTOR will ensure the following Objectives, which are proposed and committed
to by the CONTRACTOR with limitation condition due to the contract agreement.

۰ Quality Assurance of each phase of the Project will be refer to the Quality Assurance
and Quality Control procedure of the project to meet the code and standard
۰ Achievement of Time Schedule
The best way to achieve the contractual completion date(s) stipulated in the Contract
is sequential achievement step-wise, examining and confirming both quality and
safety.

In order to achieve the time schedule, CONTRACTOR will organize the best project
execution team and proper work force with effective quality and safety control.

۰ Project budget achievements is a main objective of the Project. In order to

accomplish this objective, CONTRACTOR will provide a realistic plan for completing
Project within an estimated budget and provide a means of ensuring that the Project
will proceed within budget and in accordance with the plan.
۰ The primary objective of safety and security is to ensure effective prevention of
injuries and losses all the time during the performance of the work at work site and
workshop for the protection of men, equipment and materials.

1.2.2 Execution Strategy

This Project Execution Plan will describe CONTRACTOR’s approach to the Project.
CONTRACTOR offers an organisation whose strengths, resources, facilities, experience,
technology and skills constitute a valid basis for the success of the Project Execution. The
project will be undertaken under strict control by single responsibility from start until
completion.

This Project Execution Plan outlines the development of the Project with a logical shift of
the centre of activities according to the progress of the WORK. In this framework, the
successful approach to the Project Execution is assured by a fully integrated Project
organisation and the implementation of the following key elements:

۰ The appointment of a highly experienced Project Management Team headed by a

Project Manager to day-to-day manage, control and be the focal point of

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 responsibility for the total Project as well as the single point of contact and
accountability with OWNER.
The Project Management Team will control the work of all Project participants,
formulate the objectives and strategies for Project execution and complete the
development of all Project procedures and thereby:



Meet the overall Project schedule


Attain the quality objectives


Maintain effective management control


Co-ordination procedure


Project control


Reporting


Cost control


Project administration of the activities related to the execution of the work
Provision and obtaining government or statutory authority approvals where
required

The Project Management Team will draw its resources from experienced Project
management personnel. The Project Management Team will be located mainly at Project
Home Office with emphasis on the detail engineering phase, then will be relocated to the
Site as the centre of gravity of the Project activities shifts towards Construction.
A Procurement Team will be established as part of the Project Management Team upon
award of the Contract and will direct, co-ordinate and monitor the Project Procurement
activities as well as the interface with OWNER.

The Project Engineering Team will be led by a Project Engineering Manager who,
supported by a team of Lead Specialist Engineers and Lead Process Engineers, will direct
and co-ordinate the continuation design activities since its project start throughout its
conclusion with the Site Engineering.

A Construction Management Team at the Construction Site will manage Project

Construction and Commissioning under the direction of the Project Management Team.
The Construction Management Team will be set up by experienced personnel resourced
from CONTRACTOR organization.
Construction will be in principle directly executed by CONTRACTOR. Portions of the
Construction activities will be subcontracted to others under the direct control of
CONTRACTOR.
Project Manager will be the leader of the Project Management Team that will operate
according to the Project guidelines and procedures reflecting the stipulation of the
CONTRACT.

Site Manager will be also part of the Project Management Team and will jointly work
with the Home Office Construction Co-ordinator for the elaboration of the Construction
plan.

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 Site activities shall be duly identified and planned during engineering assessment phase
and subsequently implemented during this Phase under the supervision of the Site
Management Team.

The main site activities will commence around the Assessment and Site investigation
work phase when CONTRACTOR will mobilise to Site, but front site activities will start
earlier to perform preparation work for construction.

The whole site organisation, which will be headed by the Site Manager under the
overall supervision of the Project Manager, shall be gradually built up in the
construction phase. As far as the centre of gravity of the Project activities shifts to the
Construction Site, certain key personnel of the Project Management Team shall also
move from Project Home Office to Site for a better engineering assistance to the site
and also for a more direct interface with OWNER during the key phases of Construction.

In order to complete the project on time for mutual benefits, it is strongly

recommended that OWNER app o al e ui e e ts fo CONTRACTOR’s a ti ities a d
output, such as, drawings, work inspection, etc., shall be minimized through mutual
discussions in due course of project execution to avoid any loss of time to meet the
stringent project time schedule. In addition, decisive and quick actions and replies from
OWNER are keenly requested to speed up progress. The cooperative and wide
involvement of OWNER personnel at the stage of precommissioning, commissioning and
start-up will be one of the essential points in order to meet project completion schedule
as well as successful turn-over of plant.

1.3 Co-ordination /Correspondence/ communication

CONTRACTOR’s p oje t a d/o eside t Site Manager will arrange regular co-ordination
meetings with OWNER, to discuss the various phases of the Work and its status. During
these meetings, remedial matters for resolving difficulties encountered or foreseen and
other subjects related to the Work shall be discussed.

A correspondence or basic communication procedure will be developed specifically for

this project to be approved with OWNER as guidance. The procedure will illustrate the
communications for the project.

All correspondence will show the project title, OWNER’s p oje t u e a d spe ifi
subject covered.

1.4 Mobilization and Initial Planning

Mobilisation will start immediately after the CONTRACT award with the target of setting
up an organisation able to face the efficiently activities in the initial phase of the Project.

The group of key personnel to be mobilised will be generally composed of the personnel
involved in the Project bidding phase i.e.:

۰ Project Director
۰ Project Manager
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 ۰ Engineering Manager
۰ Site Manager
۰ Construction Manager
۰ Project Control Manager
۰ Project Procurement Manager
۰ Each Discipline Lead Engineer

Project Manager will manage the mobilisation of the engineering staff and in particular
of the leaders of each technical discipline to continuing the remaining engineering work
to completion.

It is anticipated that the mobilisation will be completed and the offices will be rendered
fully operational timely enough to meet urgency of project schedule upon the award of
the CONTRACT.
A CONTRACT Kick-off meeting will be held as per contractual requirements with the
participation of the OWNER a d CONTRACTOR’s ke pe so el.

Construction Labours will be resourced from local by the Construction subcontractors.

For the reason, all equipment and facilities for construction will be leased by
CONTRACTOR and/or mobilized by Local Construction Subcontractors.

1.5 Control-Plans, Schedule and Progress

CONTRACTOR will be completely responsible for the development, implementation,

control, status update, recovery and reporting of all phases of mobilization, engineering,
procurement, construction, commissioning, start-up and de-mobilization.

CONTRACTOR will develop and submit after the contract award to OWNER for approval
a Comprehensive Detailed Project Schedule for the total project based on the WBS
(work Breakdown Structure). The project schedule will be developed using the critical
path method (CPM), will be in bar chart from, and scheduling logic will be provided. The
entire execution of work will be controlled by the project schedule. The project schedule
will have an activity list that will identify all work to be carried out by the CONTRACTOR.
The project schedule will be compatible or in advance of all milestones listed as key
milestone dates in the contract. Once approved, no changes to the project schedule can
be made without OWNER approval.

The CONTRACTOR will also notify OWNER at least once a month by the monthly
progress report the status of the critical action items that could affect the completion of
work. In addition, the CONTRACTOR will include an action plan of proposed remedial
actions for expediting these items to achieve the completion date. Costs for any such
items required to maintain the schedule will be borne by CONTRACTOR.

۰ The CONTRACTOR will prepare and issue after award of contract a schedule detailed
design refer to the previous design as reference to save the engineering phase and
grouped by disciplines. The schedule will show the document title number and the
planned start and completion states.

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 ۰ Construction Schedule will be issued by the CONTRACTOR. Schedule will describe the
various construction activities in more details.
۰ CONTRACTOR will prepare Detailed Schedule of Commissioning and Start-up showing
inter-dependence to completion of construction, requirements for materials,
technical operation and vendor personnel including details on test and operating
systems.

1.5.1 Progress Reporting

Monthly Reports
The CONTRACTOR will issue a monthly progress report to OWNER, at the seventh
calendar day of each month following the reporting period.

Format and contents will be submitted to and approved by OWNER, however, the
report will include the following minimum information for the project as a whole and for
each major component of the project, as applicable:

۰ Executive summaries
۰ Overall project status
۰ Time schedules
۰ Work performed during the reporting period, including the critical path activities
and work in progress at the end of the period.
۰ The current status of Work in narrative and graphical demonstration of scheduled
versus actual performed Work for.:
- CONTRACTOR engineering
- Equipment and material commitment
- Equipment and materials received at Site
- Field construction activities
- Commissioning and start-up activities
۰ Work planned during the next reporting period, including the critical path activities
۰ Manpower force and monthly summary of construction force reports
۰ Milestone statuses
۰ Update of the CPM schedule include s-curves indicating in detail actual versus a
schedule progress for all works
۰ Delays, changes and other problem areas and their impact
۰ Proposals for maintaining schedule or recovering lost time and other planned
corrective actions
۰ Monthly summary of the procurement report
۰ Pictures of the Site for progress demonstration

CONTRACTOR will provide monthly a drawing and specification status report.

The CONTRACTOR will promptly report in writing to OWNER the occurrence of any
event or condition that might delay or prevent completion of the Work in accordance
with the approved schedule and indicate steps being taken to meet the schedule.

Other Reports

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 The CONTRACTOR will prepare a job procedure for the following reports and submit the
format to OWNER for approval. As a minimum requirement, the CONTRACTOR will
prepare the following reports:

۰ Remaining Procurement Status Report: Will be issued every month in the Monthly
Progress Report. This report will show the status of all requisitions, Bid Requests
and purchase orders for equipment identifiable by tag number, and non-engineered
materials and subcontracts by category. The report will also highlight problem areas.
۰ Shop Inspection Reports: will be issued as soon as they are received from the shop
inspectors highlighting quality and expediting information.
۰ Construction Force Reports: Shall be issued to OWNER’s ep ese tati e o a dail
basis. It will show the total number of employees, contractors and subcontractors,
by craft for manual labor and non-manual staff on site.
۰ Safety Report: The CONTRACTOR will issue a weekly safety report documenting
safety meetings and training sessions that took place, and that are planned in the
future.
۰ Safety Incident Report: An incident report will be issued as soon as possible after
any accident for the following:
- Death from any causes whatsoever.
- A fractured scull, pelvis, arm, thigh, leg, fool or spine.
- A dislocated shoulder.
- The amputation of an arm, hand or of one or more fingers, or leg or a foot.
- The loss of sight of an eye.
- Any other serious bodily injury, including internal bleeding, burns, asphyxia where
such injury is likely to endanger life, cause permanent incapacity or temporary
incapacity of 5 days or more.

In the cases of death, the CONTRACTOR will immediately report the accident and
disposition to the nearest police station so they can make the proper investigation in
accordance with the law.

1.6 Meetings

The CONTRACTOR will be responsible for arranging the meetings, issuing the agenda.
During the project phase the Project Review Meeting will be held monthly or at shorter
intervals if requested by OWNER.

During the construction phase weekly co-ordination meetings shall take place at Site.
The location of the meeting for each work stage will be discussed in detailed after
contract.

The CONTRACTOR will prepare and issue the meeting notes

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2.0 DETAILED DESIGN AND ENGINEERING PLAN

CONTRACTOR will execute the Detail engineering work at CONTRACTOR’“ ho e offi e i

Jakarta. The detail engineering work will be split as follows:

 Detailed engineering will be performed at CONTRACTOR office in Jakarta.

 Field Engineering at job site will perform all engineering activities related to the field
construction work including keeping proper records of site revision and producing
mark-up d a i gs fo As Built pu pose.

The OWNER representatives will be hosted both, where all meetings, reviews and
discussions between OWNER and CONTRACTOR will occur; it will be CONTRACTOR care to
ensure that all necessary information, knowledge and documents are made available at
the Office where the meeting, reviews and discussions will occur.

2.1 Engineering Plan

Soon after award of the CONTRACT, the technical information from the previous
contractor to be continued and used as basic, which constitutes a part of the Project
Master Plan, will include:



Identification of Project data.
List of systems and items and their subdivision to ensure the status of each


condition.
Identification of Critical Items in terms of technical complexity, delivery time,


construction.


Identification of package units.


List of remaining design documents to be produced
Schedule of interdisciplinary reviews of main documents

2.1.1 Systems
Certain topics within the Engineering Design may be treated under the form of
s ste s . I this ase, ea h dis ipli e i ol ed ill de elop ge e al philosophies and
specifications based on contractual requirements and scope of work; typically this
applies to:

 Electrical system
 Instrumentation and automation
 Telecommunications
 Fire & Gas detection
 Fire protection

 Balance of Plant

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2.1.2 Equipment and Materials

General technical specifications for all categories of equipment and materials to be

supplied under the Scope of Work, will be defined on the basis of contractual
requirements and, together with data sheets, will become part of the material
requisitions documents.

Excluding the material and equipment that already provide from the previous contractor
will identified and determine by contractor to procurement process.

2.2 Detailed Design

2.2.1 Engineering Specifications

The continuing design and engineering, construction and maintenance will be

performed in accordance with the specifications.

CONTRACTOR’s o k ill e ased o the latest editio s of the Codes, “ta da ds a d

Practices published as of the date of this contract in the individual project specifications.
Other authoritative standards which ensure an equal or higher quality will also be
accepted.

The design, engineering, construction and maintenance will also consider the
requirements stated in Indonesia codes and standards and any local and/or
governmental/authority rules and regulations except where the requirements in the
Contract are more stringent, in which case the latter will prevail.

2.2.2 Design and Detailed Engineering

All documentation (e.g. balances, process flow diagrams, Piping and Instrument
diagrams, data sheets, manuals, etc.) from Vendors, Subcontractors, sub-suppliers,
suppliers of package units, etc., will also conform to requirements defined below. All
such documents must be suitable for integration into the documentation prepared by
the CONTRACTOR.

The design/engineering services will include all process engineering and detail design
Work, including any studies and calculations required for economic implementation of
the project.

The CONTRACTOR is responsible for covering all other points and items necessary during
its detailed engineering/design.

CONTRACTOR will:

۰ Review previous designs and specifications based on the information provided by

OWNER for review, including Stress Analysis and Vibration Analysis.

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 ۰ Submit to OWNER for approval any modification or deviations from the basis
information, which will either advance scheduled completion date or improve any
performance.
۰ Optimise the Work and prepare studies within the limits of specifications and codes
to arrive at an optimum solution for the engineering, construction and operation.
۰ Prepare process remaining data sheets and specifications.
۰ Prepare operating a maintenance manual.
۰ Execute the final detail engineering/drawings for the complete Work, e.g.
mechanical engineering, electrical engineering, instrumentation and control
engineering, piping engineering, civil and structural engineering, safety engineering,
etc.
۰ Provide the final documentation to OWNER.

2.2.3 Engineering Document Numbering

Drawings, specifications and other engineering documents will be numbered in

accordance with OWNER’s sta da ds i luded i OWNER’s Nu e i g “ ste fo
Drawing and Documents.

Detailed Engineering will also cover the revision and updating of the main Design
documents (i.e. P&ID’s, Plot Pla s, , etc.) which require constant updating depending on
the pu hase o de s pla i g a d feed a k of Ve do s’ do u e ts.

A timely feedback from Vendors will be obtained by the Engineering team and it will be
accomplished through a tight and constant interface with all the Vendors also by taking
advantage from the Procurement Centres allocated to follow up the supply packages
within their Scope of WORK.

2.3 Documents for Review and Approval Procedure

All documents issued to OWNER will be forwarded with a transmittal letter. The
transmittal letter and attached document will state the action to be taken.

2.3.1 For Review and/or Approval

All the Engineering activities will be examined and reviewed/approved during dedicated
design reviews conducted in full compliance with the Quality Assurance procedures.

Likewise, single discipline documents will be submitted to carry out review/approved

within the organisation of each discipline.

OWNER reserves the right to review and comment on transmitted documents prepared
by CONTRACTOR, Vendors or Subcontractors. OWNER returns one copy of such
documents or fax with its comments.

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 Commented documents will be returned within 14 days bearing one of the following
notations:

1. Work may proceed

2. Work may proceed. Submit Final Drawings.
3. Revise and resubmit. Work may proceed subject to incorporation of changes
indicated.
4. Revise and resubmit. Work may not proceed.
5. Review not required. Work may proceed.
Comments by OWNER associated with notations 2,3, and 4 above will be incorporated in
the next version of the documentation. Should CONTRACTOR not receive a response
from OWNER within 14 days, CONTRACTOR will notify OWNER that the time period has
elapsed. OWNER will then immediately issue comments or will state that Wo k a
p o eed ith the do u e ts i uestio .

2.3.2 For Information

CONTRACTOR to submit documents of all revision status as requested and all other
documents necessary to complete OWNER information even if not specifically defined.

3.0 MATERIAL MANAGEMENT PLAN AND LIST OF LONG DELIVERY MATERIAL

CONTRACTOR will perform procurement activities in accordance with the guidelines set
forth in procedure.

Equipment and materials will be procured competitively from the world-wide market.

CONTRACTOR will appoint a Project Procurement Manager as part of the Project

Management Team who will directly report to the Project Manager and will be duly
supported by a team of co-ordinators for developing the purchasing, expediting,
inspection and shipping activities.

The Project Procurement Manager will constitute the reference point for OWNER for any
matter regarding procurement of equipment and materials and will be responsible for
the preparation of the main procurement documentation such as:

۰ General Purchase Conditions

۰ Instructions to Bidders
۰ Instructions relating to spare parts
۰ Inspection requirements
۰ Instructions relating to Packing, Marking and Documentation
۰ Instructions relating to Shipping, Invoicing and Payments.

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 The Project Procurement Manager will be also responsible for the periodical submission
to OWNER of the overall Material Status Report describing the Project situation about the
status of enquiring, purchasing orders and relevant expediting, testing and shipping.
The content of each of the above activities, included in the Material Status Report, is
described in the following paragraph.

3.1 Scope

The CONTRACTOR’s espo si ilities i lude the follo i g a ti ities:

۰ Regularly scheduled CONTRACTOR procurement status review meetings with OWNER

as a part of Montly meeting with OWNER
۰ Obtaining and preparing documents required for importation
۰ Ensure provision of adequate insurance
۰ Provide vendor prints and other vendor documentation including data sheet
۰ Provide purchase orders

3.2 Purchasing

Receipt of a Material Requisition (MR) from an engineering department will mark the
beginning of the procurement activities related to the equipment and material subject to
the MR. Project Vendor List can be amended by CONTRACTOR subject to OWNER’s
approval by adding or deleting some vendors whose capability will be proved through
proper procedures during the course of project execution.

3.2.1 Request for Quotation

Purchasing will prepare and issue a Request for Quotation (RFQ) to Vendors selected
based on the Project Vendors/Subcontractor List.

The Contract language for all forms, documents, bids, letters and drawings, etc. shall be
English, unless otherwise expressly stated in the contract.

The Project Procurement Manager will monitor the relevant working flow and will assist
the enquiries world-wide expediting.

The Project Procurement Manager will also be responsible for the Enquiries Status Report
(to be included in the Overall Material Status Report) which will include:

۰ Enquiry Number
۰ Description of Equipment/Material
۰ Revisions, if any
۰ Date of issuance
۰ Requested date of submission by Vendors
۰ Contacted Vendors
۰ Responses by Vendors (confirm quotation, decline, waiting)

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3.2.2 Minimum Competitive Bids Required
CONTRACTOR corporate purchasing policy requires to have a minimum number of three
(3) technical/commercial competitive Bids for final analysis for any MR.

3.2.3 Purchase Order

Once the Technical Evaluation is received from the appropriate Specialist Leader or
Engineer, Purchasing will perform the following:

۰ Select the technically acceptable Vendor Bid (considering also transportation and
packing costs),
۰ Negotiate with the selected Vendor(s) in order to obtain the best possible
commercial conditions.
۰ Prepare the Purchase Order, which will include all the necessary and suitable clauses
including:
- Definition of exact scope of supply, by mentioning the pertinent technical
specifications and standards;
- Definition of delivery point of material/equipment;
- Definition of delivery terms of materials/equipment
- Definition of payment conditions as necessary and appropriate to the kind of order
concerned.
- Definition of requirements to provide representatives at the CONSTRUCTION SITE.
- Price list, commercial conditions and period of price validity for the possible future
purchase by OWNER of two years spare parts, capital spares.

۰ Issue the Purchase Order to the selected Vendor after having been obtained its
signature by the duly authorised signatory person.

Any request for waivers to specifications and/or standard requirements, will be

submitted by CONTRACTOR to OWNER for decision/resolution and must be approved
before Purchase Order is awarded.

The Project Procurement Manager will be responsible for the Purchasing Orders Status
Report (to be included in the Overall Material Status Report) which will include:

۰ Purchasing Order Number

۰ Description of Equipment / Material
۰ Revision, if any
۰ Enquiry number
۰ Supplier name
۰ Date of issuance
۰ Expected date of delivery
۰ Delivery point

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3.3 Vendor Expediting And Shop Inspection

The activities required to ensure that the actual delivery times of equipment and bulk
material are in accordance with the established Project schedule and technical
specifications will be carried out by Expediting and Inspection.

3.3.1 Inspection

The CONTRACTOR will specify a detailed procedure for CONTRACTOR inspections,

including his inspection plan listing all equipment and materials to be inspected.

CONTRACTOR requires inspection release notes. No equipment requiring inspection shall

be shipped without prior inspection release. Inspection results must be documented in
such a way that the item can be clearly identified. In the event material cannot be
ide tified at “ite the i spe tio shall e epeated at CONTRACTOR’s osts a d e pe ses.

The CONTRACTOR shall issue reports on each inspection for submission to OWNER. Any
p o le that ould affe t ualit fo deli e ti e shall e highlighted gi i g the easo
and the action to solve the problem.

The CONTRACTOR shall take responsibility for all inspection activities.

CONTRACTOR will execute the shop inspections. Normally, Qualified International

Inspection Agencies will be used. The Project Procurement Manager will monitor this
working flow and assure the co-ordination and will also be responsible for the issuance of
the overall Inspection Plan which will be based on the following main topics:

۰ Scheduled dates of testing inspections during fabrication (intermediate and final) and
scheduled delivery dates
۰ Classification of equipment / material
۰ Inspection data sheets indicating the level of surveillance required for all the type of
material to be supplied. This level (Quality Category) will be defined taking into
account both the product complexity and its function in the Units
۰ Tailo i g of sta da d CONTRACTOR’s ope ati g p o edu es he e e essa
۰ Specialised Inspectors from Qualified International Inspection Agencies.
On this basis, Inspection will execute the testing indicated in the instructions attached to
each Purchase Order. The testing activities can include, as appropriate:

۰ Pre-inspection meetings with Vendors to clarify interfaces, Quality systems, Quality

Control planning, testing procedures etc.
۰ Verification of the procedure qualification for special processes
۰ Verification of the performance qualification of welders and NDT operators
۰ Check of calibration system for inspection measurement and test equipment
۰ Material identification
۰ Check of material source certificates

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 ۰ Witnessing inspections and tests and / or review of the results
۰ Verification and collection of the inspection records and certificates
۰ Reporting to Project Management.
The overall Material Status Report will include, about testing, the following:

۰ Purchasing Order number

۰ Description of Equipment / Material
۰ Revision, if any
۰ Purchasing Order date
۰ Name of Vendor
۰ Executed inspection test date
۰ Results
۰ Non conformity reporting and management

3.3.2 Class of Inspection

CONTRACTOR will identify minimum standard of inspection on equipment and material. A

criticality rating system will be agreed between CONTRACTOR and OWNER.

3.3.3 Expediting

CONTRACTOR will execute continuous expedition by stage. The Procurement Manager

will monitor the working flow and will assure the necessary co-ordination.

The Procurement Manager will be also responsible for the issuance of the overall
Expediting Plan which will be based on the following main topics:

۰ Scheduled significant dates during fabrication and scheduled delivery dates at the
planned delivery points (Ex works Supplier workshop or FOB Departure Port / Airport)
۰ Type and frequency of contacts with Vendors according to the criticality of the
delivery date
۰ Tailo i g of sta da d CONTRACTOR’s ope ati g p o edu es, he e e essa .
On this basis, the Expediters will monitor the intermediate activities carried out by
vendors such as engineering, suborders, progress etc. by paying an adequate number of
visits to the Vendors shops including, when necessary, sub- e do s’ fa to ies.

The overall Material Status Report will include, about expediting, the following:

۰ Purchasing Order number

۰ Description of Equipment / Material
۰ Revision, if any
۰ Purchasing Order date
۰ Name of Vendor
۰ Intermediate significant fabrication dates (when applicable)
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 ۰ Delivery date from purchasing Order
۰ Expected delivery date
۰ Delivery point

3.4 Shipping and Transportation

3.4.1 General/Responsibility

The CONTRACTOR will follow the provisions of the contract and be responsible for the
following items:

۰ The t a spo tatio f o the a ufa tu e ’s o ks of all e uip e t a d e uip e t

components procured by contractor for the intact arrival of these parts at the Site
۰ The obtaining of all export, transport, transit, import and other licenses required for
entry into Site.
۰ The planning of the logistics and preparation of a procedure of handling, taking into
account the Contractual Conditions, the requirements of construction as well as the
co-ordination/supervision of transport for all carriers involved.
۰ The consideration of all risks and dangers likely to occur during transport and storage
۰ The preparation of packing and shipping instructions and specifications for the
suppliers to prevent any damage
۰ The obedience of all requirements as outlined within the specifications, end caps for
pipes, tight closures for nozzles, temporary corrosion protection, etc.
Shipping preparation and packing shall be in accordance with good practice to ensure the
intact arrival of the equipment at the Site. CONTRACTOR shall be present at loading and
unloading of sea freight to ensure proper handing.

In the event that the delivery of any equipment/equipment components is delayed so

that the subsequent construction stages are jeopardised, all measures necessary to make
up for the delays (e.g. special transport, air freight, etc.) shall be taken immediately
without additional costs for OWNER.

The overall Material Status Report will include, about shipping, the following:

۰ Purchasing Order number

۰ Description of equipment / material
۰ Revision, if any
۰ Purchasing Order date
۰ Name of Vendor
۰ Tonnage / volume size
۰ Transport means
۰ Expected Departure date from delivery point
۰ Name of forwarding OWNER
۰ Name of carrier (ship)
۰ CIF arrival point and date
۰ Arrival date at Site
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 All shipping records will be filed by Project Procurement Manager at the Project
Management Team level.
3.4.2 Shipping/Importation

The Project Procurement Manager will monitor the working flow and be the official linking
point with the construction site and will assure the necessary co-ordination in the cases in
which materials belonging to different centres can be shipped by the same departure port
in the same periods. The Procurement Manager will also be responsible for the issuance
of overall Shipping Plan.

3.4.3 Transportation to site

The CONTRACTOR will arrange and co-ordinate the following services:

۰ T a spo t fo the a ufa tu e ’s o ks to the e it po t ea s of t ai , t u k,

i e essel as ell as t a s ship e t, deli e deli e ed dut paid, a d sto i g i
the ocean vessel.
۰ Ocean shipment or air freight directly to the port of destination, including all activities
arising in this connection.
۰ Unloading/trans shipment in the port of destination, transport to the Site,
procurement of special vehicles/cranes as well as transport licenses for heavy-and
large-size packages, unloading at the Site. Arranging of a separate storage area in the
port of destination for the Plant equipment/equipment components forming part of
its scope of supply, which are marked with a special colour code system so as to be
distinguishable from equipment of other CONTRACTORs or parties involved.

3.4.4 Import/Customs Clearance

The CONTRACTOR shall be responsible for customs clearance of all equipment/materials.

E uip e t fo te po a i po t is to e i po ted at CONTRACTOR’s e pe se.

3.4.5 Transport Insurance

The CONTRACTOR shall arrange transport insurance covering all risks related to
transportation.

3.4.6 Documentation

The CONTRACTOR shall be responsible for the preparation, drawing up and distribution, if
necessary by courier service, of the relevant shipping documents in due time, e.g.:

۰ Originals/copies of the bills of lading

۰ Commercial invoices/custom invoices
۰ Package lists
۰ Certificates of origin, if required
۰ Insurance certificates/policies, if required
WORK METHODE Page 16 of 32
 As well as all other documents required for customs clearance/delivery receipt.

3.4.7 Information/Service

The CONTRACTOR shall prepare a shipping schedule taking into account the contractual conditions.
This shipping schedule has to be updated monthly over the entire period of handling. The
shipping schedule shall also contain separate information on heavy/large-size packages.
In connection with shipment scheduling, monthly progress reports/status and shipping
lists have to be submitted to OWNER. Anticipated customs clearance time shall be
included in the shipping schedule.

3.5 Import Duties and Customs Clearance

CONTRACTOR implement the activities related to customs clearance and import duties
for the equipment and material sources.

CONTRACTOR prepare the following documents for the customs clearance of imported
equipment/materials:

۰ Bills of lading or air way bills

۰ Commercial invoices
۰ Packing lists
۰ Insurance policy certificate
۰ Certificate of origin
۰ Inspection certificate

3.6 Delivery of Long Lead Equipment and Materials

Overall project schedule of this project will be depended upon the delivery of long lead
items. The delivery of long lead equipment to be decided to the bidding stage.

4.0 CONSTRUCTION AND INSTALLATION ACTIVITY

4.1 General

The CONTRACTOR shall present to OWNER a construction plan, if any, for the Work and
construction procedure to execute the plan prior to start construction. Depending on the
construction plan

CONTRACTOR’s supplies, p o isio s a d s ope of Wo k ill i lude ut shall ot e

limited to;

- All labour and supervision, construction equipment, tools, site facilities including
temporary workspace and storage sites for equipment, site utilities, temporary and
ate ials e essa fo the o st u tio of the fa ilities. All the CONTRACTOR’s
supplies, provisions and services have to be in compliance with valid laws, codes, rules
regulations, specifications and approved drawings.
WORK METHODE Page 17 of 32
 - The CONTRACTOR shall be responsible for satisfactory execution of installation in
connection with temporary Site facilities and Site utilities and ensure that these
installations comply with all relevant codes, rules, regulations, etc. and do not create
hazards and/or impediments to persons, objects for working orders.

The CONTRACTOR shall remove all temporary Site facilities and restore area to its original
condition prior to Completion of the Work.

CONTRACTOR will plan, manage and control all the construction activities for the Project
with full knowledge of the applicable laws and regulations, conditions of labour, local
conditions, the site conditions and environmental aspects, and will comply with the
requirements thereof.

The work will be carried out by the use of and by the coordination with professional
management, coordination, planning and control with accurate and timely reports
consistent with accepted good practice.

4.2 SITE MANAGEMENT ORGANIZATION

4.2.1 Site Organization

The CONTRACTOR shall establish, operate and maintain a Site organization, constituting
a esse tial pa t of the o t a to ’s ge e al p oje t o ga izatio a d ha i g e e uti e
responsibility, in order to achieve the mutual objective of completion and commissioning,
in compliance with the relevant plans, drawings, technical standards, specifications and
safet egulatio s et ., i his “u o t a to s’ offi es a d ith the “ite ep ese tati es of
OWNER. CONTRACTOR will provide a construction organization chart upon mobilization
at the site.

4.2.2 Site Personnel

The contractor shall assign a qualified site a age to e the CONTRACTOR’s

representative in all matters related to the construction Site. The Site Manager must
have sufficient experience in the construction similar System.

Site Ma age ’s staff, hi h shall i lude a “afet Ma age , QA/QC Ma age , a d othe s
as required, shall be responsible for the construction Site efforts, direct all Work to be
carried ort in the various fields activity, coordinate the performance of all Work groups
and assign all Work.

The CONTRACTOR will be fully responsible for his staff and work force, including
subcontractor and vendor personnel, and will advise shi employees to refrain from
participating in any illegal gatherings and disorderly acts, but to exhibit only the utmost
in good conduct. OWNER has the right to insist on the dismissal of persons having
violated the above or not following the general safety rules. The CONTRACTOR will fill
the position of the dismissed offender by an employee with a proven, fair record of
conduct and ability without delay and without cost to OWNER.

WORK METHODE Page 18 of 32

 CONTRACTOR’s staff a d pe so el o the o st u tio site, i ludi g su o t a tor and
vendor personnel, visitors included, will wear safety helmets with identification markings,
e.g. colored stripes, other required safety gear, and ID badges, or displayed ID cards.
There safety items will be provided by CONTRACTOR.

The CONTRACTOR will ensure that their expatriate personnel as well as all
“u o t a to s’ e pat iate pe so el o tai the e essa passpo ts, isas, ok
permits, and other documents required to enter and leave Site at such a time that the
construction schedule will not be delayed. Such personnel will not violate the
immigration laws of Site.

CONTRACTOR Site management organization is designed to achieve the following:

a. Fulfillment of Project requirements.

b. Excellent Safety performance.
c. In time mobilization.
d. Efficient construction management of SUBCONTRACTORs.
e. Optimum coordination of Site activities to achieve high productivity.
f. Control of Health, Environment and Safety aspects.
g. Maximum security.
h. Excellent coordination of all parties.

CONTRACTOR Site management organization will be issued later after the project
effective date run.

4.3 Construction Strategy

4.3.1 General Description of Strategy

CONTRACTOR will execute the Construction activities. Portion of the Construction

activities may be subcontracted to others under direct control of CONTRACTOR.

A Construction Management Team at the Construction Site will manage the Construction
under the direction of the Site Manager. The Construction Management Team will be set
up integrating experienced personnel of CONTRACTOR organization.

A team of CONTRACTOR personnel experienced in the execution of projects of this size

and nature will be established on Site to provide technical support, materials and
interface management.

Technical support will be provided by a team of CONTRACTOR Discipline Engineers

transferred from the Home Office design engineering team, to ensure project knowledge
and to carry design responsibility into the field.

The Construction Management Team assigned to the Project will be drawn from the
esou e pool of CONTRACTOR’s Co st u tio “pe ialists, to e su e ele a t e pe ie e
and familiarity in dealing with labour of various nationalities from diverse culture and
ethnic backgrounds.

WORK METHODE Page 19 of 32

4.3.2 Construction Planning

Home Office Activities

Construction personnel will first be mobilized to the Project Home Office to assist in the
development of the project plans and to provide input and direction to the project team.

Successful project execution requires construction experts to be active in all phases of

the project.

The following specific activities will be addressed early to be fully effective:

۰ Finalization of the construction schedule requirements, ensuring that the

commissioning and start-up schedule is supported and the EPC schedule is truly
construction-driven.
۰ P epa atio of a detailed Path of Co st u tio i the fo of a a ati e a d
marked up plot plan identifying the sequence of the plant completion. Set and agree
a detailed list of engineering and procurement deliverables required meeting
construction requirements and ensuring they are incorporated into the project
schedule.
۰ Development of constructability program in line with the project guidelines.
۰ Finalization of manpower requirements for the personnel; update these
requirements by means of staffing schedules, histograms and craft mixes; and
implement visa applications and permits required.
۰ Finalize construction equipment needs and ensure that timely mobilization plans are
in place
۰ De elop p oje t field p o edu es a d ethod state e ts defi i g sta da ds,
policies and procedures required for the execution of the works.
۰ Develop Health, Safety and Environment Programs (HSE Plan) in line with
CONTRACTOR HSE Policy and OWNER guidelines.
۰ Finalise temporary facility requirements, including indirects such as tools,
consumables, gases and the like.
۰ Actively pursue preliminary site activities such as approvals, permitting, establishing
contacts, soil and site investigations.
۰ Develop systems definition and completion schedules in co-ordination with OWNER
representatives.
۰ Ensure that Lessons Learned & Practices from previous projects are fully addressed at
the design stage.

4.3.3 Constructability

An aggressive and pro-active formal constructability program will be implemented. The

Project Constructability Program will be modeled on the concepts of Project
WORK METHODE Page 20 of 32
 Constructability Guidelines, in which CONTRACTOR will play an active part in
development which has been implemented on previous projects.

Key features of CONTRACTOR's Constructability Program will be:

۰ Immediate assignment of key construction personnel to the project.

۰ A Constructability Team formed with representatives from each engineering
discipline, construction, procurement, and from the OWNER Project Management
team, operations and maintenance.
Constructability engineers assigned from each engineering discipline will be responsible
for promoting and coordinating suggestions within their own group and for ensuring that
approved suggestions are implemented in a timely manner.

While the major benefits of a constructability program are gained during the detail
design, the program will also move into the construction phase of the project and be a
key tool in achieving the project objectives for Safety, Quality, schedule, budget, and
effective integration of start-up and operation.

4.3.4 Pre-mobilization Planning

CONTRACTOR’s p e-mobilization planning is to achieve the following activities.

a) Early finish of construction activities

۰ Topographic Surveys
۰ Blasting work
۰ Completion of Site Preparation

b) Early Information for Approval (IFA) drawing release to support construction team
c) Timely manpower mobilization
d) Timely construction equipment mobilization
e) Timely delivery of equipment & material to site
f) Timely delivery of tools/consumable and living necessaries to Site

4.3.4 Mobilization

The site construction mobilization for this project will be headed by a Construction
Management Team. The mobilization will be composed of an integrated staff of
expatriate local personnel. With this staff, CONTRACTOR will undertake the overall
management, planning, coordination, inspection, and control of all construction activities
from the site survey, initial planning and design, through the actual construction of
facilities.

During each of these phases, CONTRACTOR will define priorities and schedule the
engineering and procurement activities to ensure that the special requirements of this
project, especially regarding the schedule, material control and safety areas, are met.
Particular attention will be paid to relations with local authorities and at the same time
every arrangement for timely manpower mobilization, timely delivery of equipment &
WORK METHODE Page 21 of 32
 ate ial to site ill e take to keep the p oje t s hedule. CONTRACTOR’s ele a t
experience will assist in developing and executing this project on schedule.

4.4 Site Works

4.4.1 Site Location and Scope

CONTRACTOR work scope is relevant to the proposal document

4.4.2 Temporary Facilities

CONTRACTOR will initiate remain plans for temporary facilities necessary to support the
construction phase which go in common to support the field activities.

4.4.3 Manpower Mobilization

CONTRACTOR will make every effort to maximize employment of skilled workers. In the
early stage of the project, CONTRACTOR will forecast required field manpower by craft.
This forecast would be developed reflecting the information quoted from subcontractors
and reviewed periodically and reported to OWNER in order to assure sufficient
manpower for the execution of the construction work.

4.4.4 Site Mobilization

CONTRACTOR will mobilize key construction personnel in accordance with the

construction schedule.

The first stage in the supervisory staff mobilization program will be the assignment of
key personnel to engineering / procurement offices for input into the constructability
plans for the design, and for a period of familiarization with the project prior to being
assigned to the site.

Required labor will be forecasted in advance and will be recruited accordingly. Skilled
labor will be tested according to craft and project qualification standards/requirements.

4.4.5 Site Working Conditions

Working hours will be follow the local working time. Overtime work, if deemed
necessary, will be performed. Moreover, CONTRACTOR will be vigilant and remain
flexible with respect to the work schedule to suit any emergency or special requirements
such as work activities involving road crossing, shutdown, tie-ins, and testing.

4.5 Subcontracting Strategy

Sub-contracting strategy is set up by PT Contractor ’s sta da d p o edu e.

4.6 Material Handling & Control

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 The objective of the Material Control is to establish a system of checks and balances to
ensure clear inventory accountability and the orderly flow of materials from vendors to
construction forces.

4.7 Quality Control at Site

The Quality control at the site will be an integral part of the overall QC System for this
Project. The plan is intended to specify the methods to be applied in order to achieve the
quality objective of completing the construction in accordance with the Project
Specifications.

It will also establish Procedures for the monitoring and verification of the work as it
progresses. The control of documentation and non-conformances will define the set-up
and organization to handle these functions.

The Quality control at site will address applicable requirements of the Project Quality Plan
and contain the following:

۰ Quality control organisation chart

۰ Listing of references (codes, standards, main CONTRACTOR specification etc.)
۰ Engineering document control
۰ Material controls
۰ Handling of non-conformities
۰ Civil testing and Inspection
۰ Inspection of centrifugal pumps and other rotating equipment and other equipment
as specified in Contract
۰ Equipment inspections
۰ Piping inspection
۰ Flushing and cleaning of piping systems
۰ Welding inspection
۰ Non-destructive examinations
۰ Facility hand–over and plant completion
The Site QC Plan will be issued for approval in advance to commencement of construction
activity.

4.8 Site HSE Management System

CONTRACTOR’s H“E Poli a d Ma age e t P i iples ill e applied to the P oje t

during the construction and commissioning & start-up phases to manage health, safety
and environmental protection requirements.

The main HSE objectives during Construction phase are:

WORK METHODE Page 23 of 32

 ۰ Comply with applicable Health, Safety and Environmental Regulations, relevant Site
Regulations and OWNER Standards as required by the Contract, supplemented by
CONTRACTOR’s ope atio al e pe ie e;
۰ Identify all potential hazards associated with the execution of the Project, and to
develop prevention, control and mitigation measures to eliminate or minimise harm
to people, damage to plant or equipment, or adverse effects to the environment;
۰ Encourage the adoption of a positive, proactive, committed health, safety and
environmental culture throughout all phases of the Project.
CONTRACTOR’“ Co st u tio O ga izatio a d all pa ties i ol ed i the o st u tio a d
commissioning & start-up o ks at site, a el “UBCONTRACTOR“ a d VENDOR’s, ill e
provided with a complete set of Safe Work procedures to be prepared in line with
Contract requirements. Among the safety procedures included in the HSE Manual, the
following general Construction HSE Management documents will be included:

۰ Hazard Analysis and Control Programme;

۰ Work Permit System;
۰ HSE Meetings;
۰ Emergency Response Procedure (relevant to each work site).

4.9 Site Security

“e u it o t ol p o edu e shall e su e that all CONTRACTOR / “UBCONTRACTOR’s

uniformly administer during the construction period the requirements outlined for the
Project.

4.9.1 General

Site security regulations will be followed.

CONTRACTOR will make sure that all people working under this contract will be informed
about the security requirements, and the CONTRACTOR will impose disciplinary actions in
case of violation of those rules by and of his employees, subcontractors, labour or other.

4.9.2 Site Access

For the security of the site, CONTRACTOR will provide fencing in accordance with the
requirements of the work and will safeguard the site. All personnel and visitors involved
in the construction project will only be allowed to give access to the site through
controlled gates in the existing fence.

The CONTRACTOR will ensure that all employees and visitors wear at all times a
numbered security pass, issued by the CONTRACTOR, within the site area. This security
pass ust ea the a e of the CONTRACTOR’s o pa .

CONTRACTOR’s e plo ees ust pa k thei ehi les i a eas desig ated OWNER at the
site. They will use designated entrances and proceed by designated routes to work areas.
Measures will be taken to prevent unauthorized persons from access.
WORK METHODE Page 24 of 32
4.9.3 Security Supervisor

The contractor will appoint a security supervisor who will administer the security
personnel and be responsible for the whole security functions.

5.0 SAFETY AND ENVIRONMENTAL PLAN

5.1 General

CONTRACTOR is responsible for adhering to the SHE specifications attached to these

Scopes of Work, namely:

۰ Safety, Health & Environment Management Expectations, Term of Reference,

Specifications,

5.2 Safety Plan

The following security and safety instructions are basic requirements and it will not
release the CONTRACTOR of his responsibility.

- Site safety and security regulations shall be followed.

- CONTRACTOR will make sure that all people working under this Contract are informed
about the safety requirements and the CONTRACTOR will impose disciplinary actions in
case of violation of those rules by any of his employees, Subcontractors, labour or other.

- Where the Work is performed within or at the boundaries of operating facilities, extra
hazards may be present which require special precautions.

- CONTRACTOR is responsible for providing all safety precautions to protect facilities

already installed. Hot work permits must be obtained from OWNER for tie-ins and any
other hot work within or at the boundaries of the existing facilities as required by
OWNER.

- For the security of the Site, CONTRACTOR will provide fencing in accordance with the
requirements of the Work and shall safeguard the Site.

- The vehicle traffic shall also be controlled. Measures shall be taken to prevent
unauthorized persons from access.

- CONTRACTOR will nominate a person responsible for the safety and security of the Site.
CONTRACTOR will provide security guard(s). Safety meetings will be held weekly with a
report to OWNER.

- CONTRACTOR will maintain first aid/medical facilities as required by local regulations.

WORK METHODE Page 25 of 32

 - CONTRACTOR will ensure that personnel wear protective clothes, wherever required
for safety. The CONTRACTOR will develop an alarm and evacuation plan for any fire
and hazard occurring.

- CONTRACTOR will make every effort to prevent or minimize damage to existing

facilities during construction activities. Hand digging may be required by OWNER or
other affected parties near existing facilities or buried utilities.

- For safety, CONTRACTOR will maintain a clean work Site and keep those areas free of
rubbish, scrap and wastes.

- Serious accident and injuries have to be reported to OWNER immediately.

- Hazardous non-smoking areas will be clearly identified. However, generally all of the
Facilities areas will be regarded as non-smoking. Special smoking areas can be
established only with OWNER’s itte o se t.

- CONTRACTOR will maintain and supply adequate fire-fighting equipment during the
execution of the work.

6.0 QUALITY ASSURANCE PLAN

6.1 Project Quality Plan

6.1.1 Introduction

A Quality Plan will be compiled for the implementation of CONTRACTOR Quality Policy on
the project.

The Plan will be based on CONTRACTOR Quality Management System, adopted to meet
the specific requirement of the project.

6.1.2 Quality and Environmental Management System

CONTRACTOR has established and applies Quality System in compliance with ISO 9001 -
2008 for Project Management, Engineering and Design, Procurement, Construction
Management Services for Civil, Building and housing, power plant, Electrical and
Structural Steel Works including Site Construction Activities.

CONTRACTOR's Quality Policy is to provide Client with plant, equipment and services,
which in terms of performance, safety, reliability, ease of operation and maintenance
conform both to the relevant, contractual and regulatory requirements in a cost effective
manner.

CONTRACTOR's Quality strategy is based upon operating in accordance with its

established quality system whilst seeking to continually improve performance of the
service provided to Client.

WORK METHODE Page 26 of 32

 In line with this policy, CONTRACTOR will perform all activities for the project in
accordance with Quality Manual.

The manual acts as a guide to CONTRACTOR System of Procedures which govern the work
process.

A `Quality Assurance Plan' is established during the initiation of a project and covers all
phases of the project.

This document would then be specific to the Project identifying the relevant Project
details such as the organization, specified standards, acceptance criteria and any special
requirements defined by Client including any deviations from CONTRACTOR's standard
Quality System.

6.1.3 Quality Plan Format

The Quality Plan is established during the initiation of a project and covers all phases of
the project.

The document would be specific to Project identifying the relevant Project details such as
the organization, contract strategy, specified standards, contractual obligations,
acceptance criteria and any project specific requirements which will ensure the efficient
management of the Contract.

As the Project develops, the Quality Plan will be reviewed and updated as necessary to
reflect the current Project requirements.

The distribution of the document will ensure that all Project Key personnel have access to
this document.

6.1.4 Role of Quality Assurance

The role of Quality Assurance on the project is to ensure that the Employer's Quality
Policy and contractual requirements are implemented.

This will be achieved, maintained and monitored on the project by internal auditing of the
applicable departments, ensuring compliance of the Quality Program to the applicable
control procedures.

Additionally, the Project Quality Assurance Manager or his nominated representative will
be responsible for ensuring that CONTRACTOR's Quality Policy is achieved on the
following:

- Formulation and Control of the Project Quality Plan.

- Formulation and issue of and relevant QA Procedures.
- Liaison with our nominated Sub-Contractor on development and implementation of
Quality Systems.
- Vendor Quality Appraisal.
- External Auditing of proposed selected Vendors and Sub-Contractors Sub-Contractor
WORK METHODE Page 27 of 32
 Quality Appraisal.
- Site Quality Assurance and Control.
6.2 Operation Guidelines

6.2.1 Contract Instructions

Following the contract review, the Project Manager will prepare a Project Execution
Strategy and issue Contract Instructions to all relevant personnel via a "Kick-Off" meeting
and compile the Project Procedure.

These instructions will define the operational requirements for the project and identify
any methods of working that will deviate from the Employer's established company and
department procedures.

Additionally, the Project Procedures will identify the project reporting infrastructure for
control, approval and issue of the various project documentation.

6.2.2 Engineering Plan

The execution of the plan is vested within the project through the Project Lead Engineers
being responsible for the Detailed Engineering.

The content of the work will be divided to a pre-determined schedule, determining the
effective utilization of all disciplines and personnel.

Administration of the design and engineering functions is achieved by use of the

Company's Quality Manual and by specific departmental procedures. Lead Engineers are
responsible for their own Quality Assurance by ensuring that personnel under their
administration are working in compliance to these control documents and through the
routine checking and approving of engineering documents.

A program of internal auditing will be developed to ensure that the Engineering functions
on the project are being conducted accordance with the project strategy.

6.2.3 Design Basis, Codes and Standards

The basis of design criteria is determined from the application codes and standards
current in the industry, with specific project requirements as amplified by OWNER's
special requirements.

The codes and standards applicable will be copies of the national and international
editions appropriate at contract award

All these activities are subject to audit by the Quality Assurance team throughout the
project's duration.
WORK METHODE Page 28 of 32
6.2.4 Document Control

The administration of documentation throughout the project will be in accordance with

the Project Procedure, with all internal filing centralized within project files.

Administration of Vendor Document Requirement, i. e. distribution, checking and

approval, etc., will be identified in the Project Specification for Vendor Documentation.

Sub-Contractor document requirements, i. e. working instructions, procedures, test

results, etc., shall be identified within the sub-contract documentation.

6.2.5 Project Quality Assurance

Responsibility for Quality Assurance will be vested in the Project Manager, the Project
Team Leaders and Site Manager. The Quality Manager will ensure that the system is
being adhered to by internal audits and has direct reporting access to the Project Director.

The Quality Assurance activities shall be performed in accordance with CONTRACTOR's

Quality Manual and by specific departmental procedures.

All activities as defined on the project shall be subject to evaluation by Quality Assurance
Department in the form of internal auditing within the project duration.

An internal audit program shall be developed to investigate the area of operations

considered critical to the integrity of the project.

Group Managers are responsible for quality control within their groups and it is their duty
to ensure that each group is working to the departmental procedures, including any
additional requirements imposed by the Client.

Vendor quality control shall be managed through a Project Inspection Administrator,

whose responsibilities are to ensure that all required inspection activities at Vendor's are
undertaken.

Construction quality assurance shall be administered by the Construction Manager with

the Sub-Contractors being responsible for all inspection activities.

6.2.6 Requisitioning of Equipment and Materials

The philosophy envisaged on the project is that Procurement will administer its activities
in accordance with the OWNER's Quality Manual and its departmental procedures.

This undertaking shall include all relevant activities in determining the most cost effective
approach, to acquire the recognized equipment and material bulks that are consistent
with the project technical, quality and commercial demands.

Engineers are responsible for the preparation of all requisition packages in accordance
with the OWNER's quality manual and procedures.

WORK METHODE Page 29 of 32

 The package shall be complied to include all relevant engineering data sheets,
specifications, drawings and Client's relevant Engineering Specifications.

Prior to issue at the invitation to tender stage, the project commercial and quality
requirements are included in the tender package.

On return of all bid information, the content shall be reviewed for compliance with the
project requirements for:

- design content
- material requirements
- commercial scope
- quality requirements

Prior to commencement of Equipment manufacturer, all Vendor design criteria shall be

verified for compliance with project design specification in all aspects.

6.2.7 Qualification of Vendors

Vendors shall be selected from the Recommended Vendor List.

On return of the bid inquiry documents, each commercially acceptable Vendor shall be
assessed for technical and quality requirements.

This will involve, dependent upon the criticality of the supply, a visit to the Vendor to
resolve any technical or quality queries and will be in the form of technical meetings or
system reviews.

The Vendor will be awarded a Purchase Order, after complying with all the project
requirements.

6.2.8 Procurement Control

Administration of the Procurement Strategy is the responsibility of the Project

Procurement Manager. Specific project procurement specifications shall be established,
identifying the client's commercial requirements for inclusion with all invitations to tender.

Additionally, each unknown vendor shall be issued with a Quality Questionnaire to be

returned for review.

The procurement activities shall be included within the internal auditing program to
ensure its activities are being conducted in accordance with the project strategy.

6.2.9 Vendor's and Sub-Contractor's Quality Systems

Both Vendors and Sub-Contractors shall maintain an effective quality system in

accordance with the relevant requirements of ISO 9000 series or an equivalent standard,

WORK METHODE Page 30 of 32

 to ensure and demonstrate that material or services conform to the specified
requirements.

6.2.10 Materials and Equipment Inspection

The quality control of supplied items shall be through the utilization of Quality Plans from
each Vendor. These plans shall identify all the critical activities applicable to the
fabrication of equipment or the supply of materials.

These documents shall be reviewed and approved prior to the commencement of

fabrication or the shipment of material, this will ensure that the project requirements for
identification and alloy verification of materials can be fulfilled.

Copies of the approved Vendor Quality Plan shall be forwarded to the desk expediter,
enabling him to identify to the project inspection administrator when nominated
inspection visits in conjunction with the project program have been reached, although the
project Inspection Administrator is responsible for the control of all inspection activities.

All materials shall undergo full inspection prior to the issue of an inspection release. This
shall also include verification of material certification and relevant inspection dossier
requirements.

Equipment or materials shall not be shipped unless the items have been released by an
inspection waiver has been issued.

Administration of materials and equipment supplied to Sub-Contractors at Pre-Assembled

Unit yards and site shall be investigated in accordance with the project Material Control
Strategy.

6.2.11 Construction

Prior to commencement of site activities, a Project Procedure Plan shall be formulated to

address this section of the project. The plan shall be prepared by Construction Manager
and will identify the organization and activities pertaining to construction, site installation,
erection, testing and pre-commissioning.

The construction site Quality Assurance plan shall be prepared in accordance with the
OWNER's procedures and with the project Execution Strategy. Review shall be
undertaken by the Project Manager and approved by Client.

The Field Engineering Manager shall ensure that site quality control plans are formulated
by all sub-contractors to identify the specific quality practices needed to administer their
activities. These plans shall be authorized by CONTRACTOR prior to commencement of
their activities.

Distribution of all site quality plans shall be in accordance with the site distribution list,
however, in all cases copies shall be forwarded to Client and the Project Manager for
Home Office distribution and filing.

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